Florida Commissioner of Agriculture Wilton Simpson wants to amend the Florida Constitution by placing a proposal on the November ballot that would eliminate multiple taxations of agricultural production by annual local property taxes.
Simpson’s proposed constitutional amendment creates a total tax exemption of tangible personal property – such as farm machinery, equipment, and implements – on property classified as agricultural.
If passed, the constitutional amendment will help alleviate the financial burden on Florida’s agriculture producers, help incentivize the growth of agricultural production in the state, and ease increasing food costs to consumers by lowering the cost of production.
“Food security is a national security issue, and this proposed constitutional amendment represents a pivotal step towards securing the permanent future of agriculture in Florida, (and) by eliminating the burdensome multiple taxation of agricultural production, we can pave the way for sustained growth and resilience within our agricultural sector, strengthen and secure our food supply chain, support our hardworking farmers, and safeguard our state and nation’s well-being, ” said Commissioner Simpson.
The commissioner’s idea has support in the Florida House and Senate, with Senator Jay Collins and Representative Danny Alvarez announcing the filing of a joint resolution, HJR 1251 and SJR 1560.
“I am proud to work alongside Commissioner Wilton Simpson and Representative Alvarez to provide meaningful support to Florida’s farmers, ranchers, and growers,” said Senator Collins. “The tax we are eliminating is flat-out wrong, and in light of unprecedented attacks against our proud farmers, ranchers, and growers, we must do all that we can to defend agriculture and its future in Florida. This proposed constitutional amendment will support this vital industry and send a clear signal that Florida will stand with our farmers,” said Representative Alvarez.
Currently, Article VII, Section 3(e)(1) provides an exemption from ad valorem taxation of up to $25,000 on all property subject to tangible personal property taxes. Tangible personal property is defined as all goods, property other than real estate, and other articles of value that the owner can physically possess and have intrinsic value.
Examples of what is included when filing a tangible personal property tax return include:
- Goods, chattels, and other articles of value, except certain vehicles.
- Inventory held for lease. Equipment on some vehicles.
- Personally owned property used in the business and fully depreciated items.
Florida agriculture – and its over 47,000 farms and ranches – produces more than 300 commodities, contributes more than $180 billion to the state’s economy, and helps employ more than 2.5 million people.
For it to make it on the November ballot, the joint resolution in both the Florida House and Florida Senate requires support by three-fifths of the membership of each chamber. If adopted by 60 percent of voters in the 2024 general election, the amendment will go into effect.
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